Capitalism Still Works And Government Still Does Not

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In the past two weeks, American stocks have lost approximately 25% of their value. In dollar terms, we‘re talking about a loss of roughly $3.16 trillion, which is more than four times the controversial $700 billion “rescue” plan that the United States Congress approved a few days ago. A plan that only inflates in the dollar so all of us, Americans, have less spending power, and rewards bad behavior. None of the moves made by Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson have produced their desired outcomes. The money markets remain “frozen” the popular phrase of the day and the free-flow of credit has not yet resumed. the global response to the crisis. Finance ministers and heads of central banks were quick to pursue a coordinated response with the U.S., and Chairman Bernanke led the way. The outcome was an international round of interest-rate cuts, which included the major central banks of Europe, and with the exception of Japan, the central banks of Asia, including those in China. Yet not one of any of these government actions has accomplished anything, except more inflation and more government control over the economy of their nation. The current economic crisis is a capitalism problem with a capitalism solution. Just as trying to fix a broken down Ford truck with parts from a Dodge minivan will not work, neither will a government solution to a capitalist problem. Capitalist markets are based in a risk verse reward system. Take one away from the other and you and you will have never. Banks and insurance companies are no exception to the rule. When a bank makes a risky loan they should except the risk and hope for a big reward. If you risk big you should either win big or lose big. The is not a bigger regulator than the free market and it's risk reward system.